Abstract
The new era of international business is dominated by digital global connectivity, which also serves to address growing levels of uncertainty. The process of digitization is fraught with numerous dangers, and despite its importance to business on a global scale, it has received little attention, either theoretical or empirical. In this background, this paper specifically addresses three questions on digital risks in international business and related areas in India, Austria, and the United Arab Emirates: (1) Identify the key determinants to predict digital risks based on their feature importance, (2) design artificial intelligence quantitative and qualitative models to address the risk features, and (3) suggest strategies for MNCs to effectively handle the business risks as a value-added proposition. Secondary data from World Bank sources covering World Development Indicators on trade, exports, imports, ICT breadth, and depth for three countries (India, Austria, and the United Emirates) and four regional blocks such as BRICS, GCC, EU, and the QUAD regions are used to identify features important for input-output analysis using artificial intelligence tools. Preliminary results using random forest tree (machine learning tool) confirmed the superiority of AI models over traditional models for identifying features of importance for effectively addressing digital risk in international business management and related areas. The research helps the three countries to take appropriate steps to meet 2030 targets related to SDG-8 (growth and economic development) and SDG-9 (ICT) captured by political and financial crises besides pandemic events and macroeconomic variables in general.
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Notes
- 1.
For an excellent explanation of various digital risks, its sources, and how to manage them, please see Luo (2022).
- 2.
Gulf Cooperation Council (GCC) comprises of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).
- 3.
A growing momentum toward monolateral cooperation in the Indo-Pacific to “meet the challenges of the twenty-first century” was fueled by the formation of AJUS in September 2021, which was an “enhanced trilateral security partnership” between Australia, Japan, and the United States. The agreement promotes the exchange of information and technologies; integrates security and defense research, technology, industrial bases, and supply chains; and enhances the combined capabilities and interoperability of the three countries. The grou** could improve security in the Indo-Pacific region despite the fact that it is limited to the three Anglo partners (Jagannath, 2022).
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Authors’ Contribution
All four authors have equally contributed in develo** this conceptual paper using their respective domain knowledge.
Ethics Statement
The research paper has only used publicly available data from World Bank and SDG sources.
Financial Support
This research paper once accepted for publication will be submitted for funding through Indian Council of Scientific and Technical Research (ICSTR) in India, National Research Foundation (NRF) of Ministry of Education in the UAE and European Union (EU) Horizon.
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The original contributions made in the study have been incorporated into the article as well as the Supplementary Material. If you have any further questions, please contact the author who is listed as the corresponding author.
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Braendle, U.C., Almuraqab, N., Manoj Kumar, M.V., Rao, A. (2023). Digital Risk in International Business Management and Allied Areas in India, the UAE, and Austria. In: Al Mubarak, M., Hamdan, A. (eds) Technological Sustainability and Business Competitive Advantage . Internet of Things. Springer, Cham. https://doi.org/10.1007/978-3-031-35525-7_17
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